Selecting a Forex Brokerage License

forex brokerage license
March 11, 2016 Tags: , ,

Selecting the right jurisdiction for your Forex brokerage license is an important step towards your business strategy and company operations. There are a number of important factors that must be carefully evaluated before taking on such decision. There are dependent on the regulatory requirements and investment firm license costs.

  • Minimum capital requirements
  • Time frame (processing the application and obtaining the license)
  • Minimum personnel
  • Personnel availability and qualifications
  • Taxes
  • Office running costs
  • Compliance
  • Technical and IT
  • Legal
  • Reputation

Here is a brief overview of the main advantages of each regulatory jurisdiction:

  • Belize: tax-exempt status
  • BVI: favourable tax environment, economic stability, asset protection opportunities
  • Cyprus: tax-friendly environment.
  • Malta: modern infrastructure and a stable constitution
  • Mauritius: favourable tax planning opportunities
  • New Zealand: low cost of acquiring a Forex license, stable economy and government
  • Singapore: corporate tax rates are extremely competitive, stable economy and political environment
  • United Kingdom: very stringent, respected, and well regulated 

Required documents for license application will depend on the jurisdiction and the type of license you choose. Below is a list of the general information required to submit the license application (certified by Notary Public and legalised via Apostille):

  1. Completed and signed application form
  2. Business Plan with 3-5 years financial projections
  3. Company operations manual
  4. Internal policies and procedures
  5. Risk management and anti-money laundering
  6. Corporate governance
  7. Minimum statutory capital
  8. Certificate of Incorporation
  9. Memorandum and Articles of Association
  10. Registers of Directors
  11. Shareholders
  12. Certificate of Good Standing
  13. Additional documentation from directors, managers, officers, and shareholders/beneficial owners

Contact us to discuss which option would be best for your Forex broker licensing.